MUSKEGON -- Muskegon city commissioners say they didn't run for public office to raise taxes and cut city services.

But that is exactly what they did this week.

Commissioners voted 5-2 to approve a 2010-11 budget that increases property taxes by 1 mill and cuts more than $600,000 in programs and staff. The budget begins July 1, as the city has gone to a new July-June budget year.

"There are things in this budget that came very hard to us," said Commissioner Chris Carter, who in the end voted for the budget despite its gutting of the city's youth recreation programs. "People made concessions we didn't want to make, but had to keep the city operating."

HOW THEY VOTED

Muskegon city commissioners this week voted 5 to 2 to approve the 2010-11 budget, which increases property taxes by 1 mill and cuts more than $600,000 in programs and staff.

The city, along with other municipalities, is facing lower tax revenues due to the economic recession and continued increases in costs, especially employee benefits.

The tax increase will raise about $725,000 per year for the city and costs an owner of a $50,000 home with a taxable value of $25,000 an additional $25 in property taxes next year. Mayor Steve Warmington and Commissioner Steve Wisneski said they voted against the budget because of the tax increase.

"Now is not an appropriate time to increase taxes," Wisneski argued. "It's not an appropriate action in this economy. Now we must cut costs."

Steve Warmington

But Commissioner Larry Spataro said he could not cut beyond what the city already has, if a tax hike could be approved under the city charter. Without a tax hike, the city might face reducing the police force by up to nine officers, an action Spataro said would be unacceptable.

Voter approval is not needed for the tax hike to take effect.

"We are living in a devastating time economically," Commissioner Clara Shepherd said. "The city can't carry on like we have. The city has had to adjust."

In proposing the city budget, City Manager Bryon Mazade suggested that instead of the commission hiking property taxes by 1 mill, the city might seek a special 1-mill property tax increase dedicated to roads. That would keep needed funding for road improvements and save general fund moneys now spent on roads.

After the budget was passed, Mazade said the special road millage issue is still on the table. City commissioners may consider putting a 1-mill road tax before city voters in the Nov. 2 general election. If it is approved, the city would repeal the 1 mill of general property tax increase that is in the 2010-2011 budget, the city manager said.

Commissioners would have to decide on the special road millage issue by late August to put the proposal on the November ballot, City Clerk Ann Becker said.

The new fiscal calendar ends a short six-month budget as of June 30. The fiscal year change was approved by city voters in November in a charter amendment.

The fiscal year change does not increase revenues, but it gives a boost to the city's cash flow. The city expects to end its shortened budget year with a fund balance of $1.6 million that should increase to $3.4 million by June 30, 2011, within a $23.4 million general fund budget.

The new spending plan cuts $250,000 out of the city's fire budget through the layoffs of three firefighters. Those layoffs will not be needed if a new labor contract allowing for part-time firefighters is approved by the city's firefighters union, city officials said.

Other program cuts include the city lifeguards and park rangers at Pere Marquette Park, much of the remaining recreational programs, the layoff of four employees and removal of three vacant positions from the budget.